Property management accounting software offers a number of features that typical accounting systems do not. In addition to financial reporting and payroll, these programs will integrate industry-specific information about vacancies, units, tenants and property maintenance into the real estate software.
The more robust accounting tools also manage company information related to property listings, track referrals and link electronic documents to sales.
This guide was created to help property managers determine the best software to meet their needs. We’ll cover the following topics:
What Is Property Management Accounting Software?
Common Features of Property Management Accounting Software
Benefits of Property Management Accounting Software
What Type of Buyer Are You?
Business Trends to Be Aware Of
Property managers are required to perform some specific types of accounting processes, such as holding and tracking security deposits and common area maintenance costs.
A property-management-specific accounting system is designed to assist managers with their unique responsibilities, such as:
Reporting features also allow managers to review income by property so users have a bird’s-eye view of their financial health.
Screenshot of open vacancies in Buildium
|Track rents & payments||This software will categorize receipts based on the specific real estate category, such as rents, utilities, subleases or late fees. The software also calculates real estate taxes, property insurance, maintenance costs and payroll, and all of this information ties directly to the tenant or property record.|
|Online payment portal||Some property accounting systems include an online portal for tenants to pay rent. This simplifies the payment process, as renters can pay online 24/7 using credit or debit cards. This feature is more common in full property management suites.|
|Bank reconciliation||Many systems offer bank reconciliation assistance to ensure the figures match in both your’s and the bank’s accounts. Users can download bank statements to identify and correct discrepancies.|
|Reporting||Accounting systems typically offer a variety of report and chart types to view income and expense data by month or year. These reports can be automatically generated at certain dates and shared with specific people.|
|Business growth & development||Automatically calculate annual rent increases, property appreciation and depreciation, as well as manage the growth of your assets. Many of these programs also have built-in budgeting and forecasting capabilities and the ability to analyze rents based on current market rates.|
|Common area management||Most solutions calculate charges and costs associated with common areas, tracking maintenance, policies and usage as desired.|
The automation of accounting processes is an obvious benefit of property accounting software, and others increase convenience in common tasks.
Software can be implemented in various ways, but two options are most common today:
Portfolios can vary greatly from one property manager to the next. Software vendors know this and offer a range of features that can often be mixed and matched to meet a manager’s requirements.
The property management industry is always subject to new government regulations, renter behavior trends and the ever-changing real estate and housing markets. Here are some events that impact property managers:
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